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> If you take $10,000 USD in cash and put it in the freezer, in a year it would be worth $9,700 of today’s value. > Yep you read that right. Holding USD means
by kindfellow92 9y ago
> If you take $10,000 USD in cash and put it in the freezer, in a year it would be worth $9,700 of today’s value.
> Yep you read that right. Holding USD means the cash will be “worth” less next year. This is because of a 3% inflation rate.
USD inflation is effectively dead ATM and has been since at least the early 2000s.
- stu2010 9y agoHow do you reconcile this with the extreme cost increases since the mid 2000s in education, healthcare, and housing (rent, at least).
- saalweachter 9y agoThose things are considered a problem because they are increasing faster than inflation.
- kindfellow92 9y agoThose things are not related to inflation. Look at the CPI.
- jtmarl1n 9y agoHow has inflation been "dead" since the early 2000s? https://data.bls.gov/timeseries/CUUR0000SA0L1E?output_view=pct_12mths https://data.bls.gov/timeseries/CUUR0000SA0L1E?output_view=p... https://www.statista.com/statistics/244983/projected-inflation-rate-in-the-united-states/ https://www.statista.com/statistics/244983/projected-inflati... http://www.usinflationcalculator.com/inflation/historical-inflation-rates/ http://www.usinflationcalculator.com/inflation/historical-in...
- kindfellow92 9y agoSigh, compare the trends in the last 17 years to the trends in the previous 17 years and the 17-year periods prior to that. “Effectively dead” does not mean 0.0%
- Roodgorf 9y agoYeah, where did they get that number? As I understand it the FED hasn't met its target 2% inflation rate in years. Edit: It seems I was somewhat mistaken: the FED set the 2% inflation goal in 2012[1] and hasn't met it since, but there are various ways to measure inflation, so it depends on who you talk to. [1]https://www.nytimes.com/2017/07/24/us/politics/us-inflation-remains-low-and-thats-a-problem.html?_r=0 https://www.nytimes.com/2017/07/24/us/politics/us-inflation-...